Luke Gromen, president and founder of research firm Forest For The Trees, warns that the U.S. dollar-centric global monetary system is breaking down but gold and Bitcoin (CRYPTO: BTC) are well-positioned assets.
What Happened: In a recent interview, Gromen argued that the U.S. government’s fiscal situation has become so precarious that it now requires negative real interest rates and continued stock market gains to remain solvent.
“The reserve currency issuer of the world cannot afford their debt unless real rates are negative over some sustained period of time,” Gromen stated. He pointed out that in August, the U.S. government’s “true interest expense” – including entitlements and interest payments – reached 150% of tax receipts.
Gromen believes this dynamic will force the Federal Reserve to cut interest rates …
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